What is a business plan?
A business plan precisely defines your business, identifies your goals and serves as your firm’s resume. It describes the products and services you will sell, the customers to whom you will sell them, the production, management, and marketing activities needed to produce your offerings, and the projected profit or loss that will result from your efforts.
A business plan is a written summary of what you hope to accomplish by being in business and how you plan to organize your resources to meet your goals. It is a vehicle to describe your business and your product or services and is a road map for operating your business and measuring progress along the way. The plan describes in writing, the market, the industry, customers and competitors, your products/services, your marketing plans and your operations along with sales and cash flow forecasts. The business plan is a document that should change as your business grows.
A business plan precisely defines your business, identifies your goals and serves as your firm’s resume. It describes the products and services you will sell, the customers to whom you will sell them, production, management and marketing activities needed to produce your offerings, and the projected profit or loss that will result from your efforts. The business plan should provide answers to: Who are you? What are you going to do? Where are you going? How are you going to get there? Completing a business plan forces you to examine all decisions of management, marketing, personnel and finance issues in an objective and organized way. Another important benefit of the planning process is that you will project the amount of financing needed for start-up and the early stages of your business. You may want to seek out technical assistance to develop your business plan. Return to top Why do I need a business plan? Although the preparation of a business plan is time consuming, it is important
According to the Small Business Administration, “A business plan precisely defines your business, identifies your goals, and serves as your firm’s resume. The basic components include a current and pro forma balance sheet, an income statement, and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make good business decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan application. Additionally, it informs sales personnel, suppliers, and others about your operations and goals.
